Invest · ETFs
Buy a basket. Know the contents.
An exchange-traded fund puts a group of investments into a unit you can trade. What it holds and how it trades matter more than the label.
A fund that trades on an exchange.
Explore investmentsMany ETFs track an index, such as a basket of company shares. Others offer exposure to assets such as gold. You buy or sell units through an eligible trading account.
The market price changes during trading hours. It can differ from the value of the fund’s underlying holdings, and the investment can lose value.
Before you choose
Four things worth checking.
Two ETFs with similar names are not necessarily interchangeable. Read the scheme details and consider how you would buy and sell.
What the ETF holds
Read the index or investment objective. A broad-market, sector and gold ETF provide very different exposures.
The complete cost
Look beyond the expense ratio. Brokerage, the bid-ask spread and other account charges can affect your cost.
How it trades
Check trading liquidity and the market price relative to the value of the underlying holdings. An ETF may trade at a premium or discount.
How closely it follows its objective
For an index-tracking ETF, review tracking difference and tracking error along with the scheme documents.
ETF or index mutual fund?
If both track the same index, the exposure may be similar. The transaction process and costs still differ.
| What to compare | ETF | Index mutual fund |
|---|---|---|
| How you transact | Buy or sell units on the exchange through your broker. | Transact with the fund through an eligible channel. |
| Price | Market price during trading hours; may differ from net asset value. | Applicable net asset value, subject to cut-offs and scheme rules. |
| Costs to check | Fund expenses, brokerage, bid-ask spread and account charges. | Fund expenses, any exit load and relevant transaction charges. |
Choose the exposure your portfolio needs.
Savart’s advice considers your goals and existing holdings. Compare the plans for the coverage and support you need.
You decide whether to act on the advice. If you choose to buy or sell an ETF, use your own eligible broker account.
Compare advisory plansQuestions about ETFs.
What is an ETF?
An exchange-traded fund holds a portfolio of investments, and its units trade on a stock exchange. Many ETFs aim to track an index or asset, but their objectives and risks differ.
How is an ETF different from an index mutual fund?
Both may track an index. ETF units trade on an exchange at a market price during trading hours. An open-ended index mutual fund is generally transacted with the fund at the applicable net asset value, subject to its rules and cut-off times.
Are ETFs always low-risk or low-cost?
No. Risk depends on the underlying exposure, and costs depend on the fund and how you trade it. A concentrated sector ETF can carry very different risks from a broad-market ETF.
Can I buy an ETF through Savart?
Savart X provides advice. You choose whether to act through your own eligible trading and demat account.
Make the basket fit the portfolio.
Discuss the allocation you are considering and the advice you need.